Reuters: Northwest shares plunge as bankruptcy looms

The end may be near for Northwest.

Shares of Northwest Airlines plunged 58 percent on Tuesday following a press report that the No. 4 U.S. carrier could file for Chapter 11 bankruptcy protection as early as Wednesday.
The New York Times, citing anonymous sources, said both Northwest and No. 3 carrier Delta Air Lines were very close to filing.
“The shares are down obviously on the New York Times article. That’s the only news that came out before the stock before the stock began to fall,” said Helane Becker, an analyst at Benchmark Cos.
“I think that they will file before October 17 for sure. With oil prices where they are and big pension contributions due, and without higher airfares, Northwest had no choice,” Becker said.
Shares of Northwest were down 57.7 percent, or $1.91, to $1.40 in afternoon trade on Nasdaq.

Posted by on September 13th, 2005 at 4:02 pm


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